5 Industrial Real Estate Trends: Appraiser Valuations

ANAHEIM, Calif. - April 16, 2018 - PRLog -- E-commerce is a significant market force in how industrial real estate property is used today. The primary shift is from warehousing and logistics support for retail brick and mortar stores (like Toys R Us) to same-day and next-day online e-commerce order fulfillment and package distribution (like Amazon). The list below is a brief description of 5 industrial real estate trends.

1) Just In Time Manufacturing

Just-in-time (JIT) manufacturing or production is a strategy to receive goods only as they are needed. It involves the use of improved technologies, business practices, and resource management (such as industrial property).

2) Government Policies

Government policies, such as land use reform, property taxes, foreign trade zones, and trade restrictions all play a role in the use of industrial property. The general long-term trend, regardless of jurisdiction or administration, is for increased regulations and costs.

3) Same-Day / Next-Day Order Fulfillment

Multi-tenant shallow-bay compact fulfillment centers are built for fast order fulfillment and delivery. These buildings have requirements like larger parking lots and close proximity to major urban centers.

4) Energy Efficiency

LEED certification of industrial property is a lengthy process and may not be the ultimate goal. It is more about reducing waste and costs to become more competitive. There are a number of ways to reduce energy wastes within industrial properties.

5) Reliable Internet Access

Modern business require reliable access to the Internet for research, communications, and critical business operations. If a building does not have usable Internet, that building will have less value.

Collins and Associates
http://www.dcnassoc.com/